Other Do you think 24 month financing on phones is detrimental to people?

Discussion in 'iPhone' started by tonybarnaby, Apr 14, 2018.

  1. tonybarnaby thread starter macrumors 6502a

    Joined:
    Dec 3, 2017
    #26
    I paid $800 for my 8 plus. If I get 3 years out of it, that will mean it costs me less than $1 a day. Doing the upgrade program would be around $500 per year(with taxes) and no phone to sell when you upgrade.

    $799 + taxes = $850. Sell for $300 in 3yr
    - $550 over 3 years


    IUP every year = ~$500 a year x 3 years = $1500. No phone to sell to cut the costs

    So if I keep my 8 plus for 3 years, I’ll effectively save $1k. I can then use that $1k to pay cash for my iPhone purchase in 2020.
     
  2. appleguy123 macrumors 604

    appleguy123

    Joined:
    Apr 1, 2009
    Location:
    15 minutes in the future
    #27
    That’s just a totally wrong way of looking at it. At the end of 2 years on iUP, you’d own the phone too for the cost of the phone and AppleCare. The only benefit (unless you consider iUP some kind of trap for people who can’t actually afford the monthly installments consistently) to buying the phone outright is that you don’t have to buy AppleCare. You could still keep an iPhone bought using iUP for 3 years and sell it the same way you could if you bought it and wanted to sell three years later. You own the phone after 2 years.
     
  3. Cleindian44 macrumors newbie

    Joined:
    Apr 14, 2018
    #28
    My first post!

    I'm not going to tell people what to do with their money. I would love to have an iPhone X. What I'm not in love with is adding $30-$40 more to my already inflated monthly bill. When I do buy a new phone, I am seriously leaning towards paying for it at once.
     
  4. kazmac macrumors 603

    kazmac

    Joined:
    Mar 24, 2010
    Location:
    On the sliver scream
    #29
    Not going to answer for anyone but myself. If folks want to finance for two years, that is their business. It's not unlike the 2 year subsidized contracts. Me, I'd rather pay up front. I learned something very important about buying Apple after last year: buy what I need and use, not what I think I want. So cheaper iPhone -and if I replace it- an iPad Pro on sale going forward, while the money I save on the upgrade will go toward my next Mac. Now I've realized my iPhone needs are very modest, I'll buy according to what I need and the price I am willing to pay. And, yes, I will continue to pay up front. :)
     
  5. smallcoffee macrumors 65816

    Joined:
    Oct 15, 2014
    Location:
    North America
    #30
    I agree, there isn't a one-size-fits-all strategy, but almost universally it's better to buy and pay on installments than it is to pay cash up front. Even an awful CD will return something more than 0%.
    --- Post Merged, Apr 14, 2018 ---
    We have a problem with people buying **** just to buy it. But that cost, as high as it is, is also subsidized by what's close enough to slave labor. I'd gladly pay 2-3x as much for a tech product if I knew the workers were getting a good wage and it was here in the United States or Europe/Japan/we. Even if they were robot workers. ;)
     
  6. Mrbobb macrumors 601

    Joined:
    Aug 27, 2012
    #31
    That's so old news. That's precisely the vendors' intention. That's what credit cards do, BUY NOW! and you only have to pay minimum every month! But no-interest financing can be a good tool if one uses it properly.
     
  7. comper macrumors regular

    Joined:
    Feb 27, 2011
    Location:
    Michigan
    #32
    No.

    If you’re genuinely worried about how it will affect people’s finances then you should start with things much more precarious than a fixed-rate $30-50/mo payment at 0% interest.
     
  8. Dodgeman macrumors 65816

    Joined:
    Nov 30, 2016
    #33
    We can start with the manufacture charging a price that is out of line for a cell phone, but hey consumers are paying for it so.
     
  9. bruinsrme macrumors 603

    bruinsrme

    Joined:
    Oct 26, 2008
    #34
    Maybe the OP is correct.
    Then again should people thought as fat be barred from buying certain foods?

    Credit checks are used, in most financing cases.
    Cmon we’ve all read the posts Where some forum goers returned multiple phones for the slightlest (more like perceived defect).
    How in the world can someone get 4+ defective phones?

    I do the iPhone upgrade program.
    Very content paying a little extra for the convenience.

    It has nothing to do with not having the money. It has everything to do with 0% interest, and miles.
    Plus I don’t have to worry about selling it.

    Some finance big ticket items like TVs.
    Why dip into savings and pay in full instead of simply taking that money from the disposal income.


    The price is $1000 or around $50 a month.
    Why deny anyone the opportunity to experience a phone because they can pay for it today but can pay a portion of it every month?
     
  10. saltd macrumors 6502a

    saltd

    Joined:
    Aug 1, 2010
    #35
    The fact that I can get a zero interest loan on a $1k or more device is awesome...and quite frankly-amazing.

    For better or worse, these devices are totally integrated into every day of our lives. A thousand bucks spread over 30 months is really insignificant for the utility of the product.

    My beef is with the jacked up price of data plans, but that’s a different issue altogether.
     
  11. Septembersrain Contributor

    Septembersrain

    Joined:
    Dec 14, 2013
    Location:
    Texas
    #36
    I don't mind, I do wish they had different options though. Like say 6 month, 12 month, or 18 month.

    Sure I can pay mine off faster but I have to do so intentionally. It would be nice to have it as an autopay.

    People will spend what they will. Most want to live the best they can. Sure, in some cases that is living beyond their means. However, that is not for anyone else to judge. It's going to happen regardless.
     
  12. Reno Raines macrumors 65816

    Joined:
    Jul 19, 2015
    #37
    I prefer to pay full price for my phone as I just like the idea that I own it. My wife likes the financing option as since it is zero interest she feels like it works best for her. I think both options are valid and the more choice for the consumer the better.
     
  13. Relentless Power macrumors Core

    Relentless Power

    Joined:
    Jul 12, 2016
    #38
    Interesting to see the different points in this thread about how others Choose to either pay the device off over the course of time or own the smart phone out right. Regardless, it goes to show you that everybody will have a different method of how they choose to pay for the phone, which there really is no wrong answer depending as long as the consumer is comfortable with the payments or spending the full retail price for the phone.
     
  14. Apple fanboy macrumors Penryn

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #39
    I'm not a fan of finance. Even at 0% interest.
    Not any good if you lose your job etc.
    The last loan I had was a mortgage. I paid that off in about 8 years rather than 25.
    Then when I was made redundant 10 years ago I had no financial worries of how I'd keep up the repayments on my house/car/phone.

    Experiencing a phone is not the be all and end all. It's a want not a need.

    As for people returning multiple devices well it happens. But they are pushing up the price for the rest of us! Another of my pet hates.
     
  15. The-Real-Deal82, Apr 14, 2018
    Last edited: Apr 15, 2018

    The-Real-Deal82 macrumors 603

    The-Real-Deal82

    Joined:
    Jan 17, 2013
    Location:
    Wales, United Kingdom
    #40
    If I didn’t have 24 month contracts I likely wouldn’t buy more expensive smartphones. I’m not one of these people that doesn’t work out the total cost before committing however.

    I like spreading the cost as it’s more affordable than buying outright and dealing with the outlay cost initially. I think most people still finance phones this way and without 24 month contracts the industry would be in serious trouble.

    The iPhone X even on contract is still hideously expensive where I live and nearly double the monthly price of an average iPhone contract. That’s lost a lot of people’s interest here and given a boom to older handsets and the iPhone 8.

    PS: it’s also worth mentioning that having a phone contract is very good for your credit rating if you can afford it.
     
  16. Apple fanboy macrumors Penryn

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #41
    I always work out the cost. In a spreadsheet.

    And who cares about credit ratings if you never plan to borrow money in your life again?
     
  17. The-Real-Deal82 macrumors 603

    The-Real-Deal82

    Joined:
    Jan 17, 2013
    Location:
    Wales, United Kingdom
    #42
    If you don’t plan on borrowing money in your life then credit ratings won’t matter. It’s certainly helped me getting the last 3 mortgages I’ve had and car loans.

    Everybody is different and there is no correct answer to how anybody chooses to finance their phone.
     
  18. Apple fanboy macrumors Penryn

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #43
    This is true. Like I said it's the lower paid people I work with who moan they are always skint that bother me. They finance their phone, car and go out a lot then say they can't afford to buy a place and the government should do more to help.
    I just sit there and think well how about saving hard like I did?
    They have no idea!
     
  19. The-Real-Deal82 macrumors 603

    The-Real-Deal82

    Joined:
    Jan 17, 2013
    Location:
    Wales, United Kingdom
    #44
    I used to work with people like that too, the type of people that think iPhones and Sky TV are necessities. My wife and I both have pretty good jobs and are comfortable but still use sensible finance for certain purchases. Having been made redundant a couple of times I have employment insurance just in case. We are also in a position where one of our wages will cover all outgoings just about and never commit to anything that’s out of reach financially.
     
  20. Apple fanboy macrumors Penryn

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #45
    Sadly many don't. Then when their job goes south, they are left with a bunch of bills they can't pay.
    I don't have a problem driving round in a car that isn't the newest in the parking lot. I'm happy knowing there isn't a car in the lot I couldn't buy cash tomorrow from my savings if I wanted.

    But everyone is different. Some people believe they will never lose a job or that mum or dad will bail them out.
     
  21. bruinsrme macrumors 603

    bruinsrme

    Joined:
    Oct 26, 2008
    #46
    Any phone for that matter is a want.

    I happen to enjoy electronic gadgets. I used to enjoy fine bottle of wines.

    Spending $150 on a bottle of wine was surely a want but also an experience.

    Life experiences come in many different forms.

    Went out to dinner the other night, $475 per couple. Excellent experience, wouldn’t hesitate doing it again.

    As far as the phone financing goes, that is up to you and I along with others.

    People abuse alcohol, people will abuse credit.

    It seems to me we hear about the “Apple tax” quite a bit. This leads me to believe many feel Apple prices their products higher than others. Yet people keep buying.

    Barclays pays me money to use their 0% financing.
     
  22. MacDawg macrumors Core

    MacDawg

    Joined:
    Mar 20, 2004
    Location:
    "Between the Hedges"
    #47
    Saying a phone is a want and not a need is a little misleading IMO
    Yes, for some it may not be absolutely necessary, at least not like air, water, sleep, etc.
    But for others is it essential for their job

    I know in my job, it is essential I have a phone that is capable of calls, texts and email
    But it also needs the capability for VPN, remote desktop client and a screen big enough to work remotely in a crisis if needed

    No, it doesn't have to be a X, it could be a 7 Plus like I had previously
    But if I had no phone, I would have no job either, at least not the job I have now
     
  23. Apple fanboy macrumors Penryn

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #48
    I'm not saying people have to live in the dark ages, but they don't have to have the latest iPhone. As you say I can do all that on my 7+. I suspect I could still do on my iPhone 6+.
     
  24. nviz22 macrumors 601

    nviz22

    Joined:
    Jun 24, 2013
    #49
    Depends on the person. For me, I don't want an additional credit check, new debt, and to have less flexibility over switching carriers or having to get some sort of insurance plan included.

    I like the SIM free models you get unlocked and lay it all upfront.
     
  25. MacDawg macrumors Core

    MacDawg

    Joined:
    Mar 20, 2004
    Location:
    "Between the Hedges"
    #50
    Yep, it does depend on the person
    I got my first iPhone 3GS on AT&T and I have had AT&T ever since
    I've never once considered changing carriers and have no need for an unlock or insurance plan
    I have never dropped or damaged a phone, but I do have Apple Care, only because it is a part of the Apple upgrade plan
     

Share This Page